Do you like to invest in single-family rental properties? If this is the case, you should be mindful of the “zombie property” (also known as a “zombie foreclosure”) phenomena. A zombie property is one that has been abandoned by the owner but has not yet been formally foreclosed on. Potential buyers may face further challenges because of this. In this blog post, we will clarify a zombie property and discuss the actions needed to buy one.
What is a zombie foreclosure?
A zombie foreclosure happens when a homeowner abandons a property before the foreclosure process is finalized. If a homeowner defaults on their mortgage, they may believe they must vacate immediately, even if a foreclosure has not yet happened. They may also leave the property for many different reasons. Because the foreclosure procedure has not been completed, the homeowner still owns this zombie property, not the bank or lender. These properties are oftentimes left abandoned for extended periods of time, deteriorating and posing safety and property value hazards for the entire community. Furthermore, the owner’s financial responsibilities for the home continue to rise, from property taxes to Owners Association levies and fines – and beyond.
How can I purchase a zombie property?
As you can expect, this scenario can make purchasing a zombie property difficult. While this does not rule out the possibility of purchasing zombie properties, to protect your financial investment, you should be alert to the potential risks. Here are some things to keep in mind if you’re considering purchasing a zombie property:
- Do your research: Before you make an offer on a zombie property, you need to know exactly what you’re getting into. This includes investigating the property, the surrounding area, and the current market conditions. If you are unfamiliar with the area, you should contact a local property management business that specializes in investment property transactions.
- Get a good home inspector: A professional home inspection is even more important when you’re considering a zombie property. Be sure to hire a qualified inspector who can identify any and all potential problems with the property.
- Have realistic expectations: It’s important to remember that a zombie property is, by definition, a distressed property. This means that it will likely need both repairs and renovations and may not be up to your usual standards. Be sure to factor this into your offer price.
- Get expert help: Buying a zombie property can be complicated, so it’s important to have an experienced real estate agent, property management company, and attorney on your side. They can help you navigate the process and protect your interests.
If you’re considering buying a zombie property, remember to do your research and get expert help. With some extra care and attention, you can turn a zombie property into a thriving investment.
Investors in rental properties can rely on Real Property Management Steel City to help them locate and evaluate suitable properties for purchase. To maximize your return on investment, you need an in-depth analysis of the local market that our experts can provide. To find out more, visit or call the Real Property Management office near you.
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.